Omega Protein Reports 2009 Third Quarter Results
November 03 2009 - 4:30PM
PR Newswire (US)
HOUSTON, Nov. 3 /PRNewswire-FirstCall/ -- Omega Protein Corporation
(NYSE: OME), the nation's leading producer of Omega-3 fish oil and
specialty fish meal products, today reported net loss of $2.8
million ($0.15 per share) for the third quarter of 2009, compared
with net income of $3.1 million ($0.17 per share) for the third
quarter of the previous year. Revenues for the third quarter ended
September 30, 2009 were $49.9 million compared with revenues of
$54.5 million for the comparable quarter in 2008. Omega Protein
recorded operating loss of $2.2 million for the third quarter of
2009, versus operating income of $5.3 million for the third quarter
of 2008. For the nine months ended September 30, 2009, the Company
recognized revenues of $121.8 million, compared with $137.7 million
in revenues for the first nine months of 2008. Omega Protein
recorded operating loss of $1.9 million for the nine months ended
September 30, 2009, versus operating income of $21.0 million for
the comparable period a year earlier. The Company had net loss of
$4.0 million ($0.21 per share) for the nine months ended September
30, 2009, compared with net income of $11.7 million ($0.65 per
share) for the nine months ended September 30, 2008. The Company's
2009 third quarter results reflect decreased revenues and gross
profit margins primarily due to lower sales prices, partially
offset by increased sales volumes when compared to the 2008 third
quarter. The decreased sales prices are a result of the general
constriction of global markets and, more particularly as it relates
to fish oil, a substantial reduction in demand from the Chilean
aquaculture industry. On October 21, 2009, the Company entered into
a loan agreement with Wells Fargo Bank which consists of a 3-year
revolving credit facility of up to $35 million, including a $7.5
million sub-limit for the issuance of standby letters of credit.
The new loan agreement is secured by substantially all of the
Company's assets except for those already pledged in connection
with existing federal Fisheries Finance Program loans. The loan
agreement replaced a former credit facility with a group of banks
led by Bank of America, N.A. During the nine months ended September
30, 2009, the Company received a federal hurricane assistance grant
of $2.7 million from the State of Mississippi, net of fees, related
to the impact of Hurricane Katrina, which occurred during 2005.
Additionally, the Company incurred $1.4 million of interest expense
related to interest rate swaps which became ineffective during the
period as a result of debt repayments related to the refinancing of
the Company's credit facility. Excluding these items from the
results of operations, net loss for the nine months ended September
30, 2009 would have been approximately $4.8 million ($0.26 a
share). About Omega Protein Omega Protein Corporation is the
nation's largest manufacturer of heart-healthy fish oils containing
Omega-3 fatty acids for human consumption, as well as specialty
fish meals and fish oil used as value-added ingredients in
aquaculture, swine and other livestock feeds. Omega Protein makes
its products from menhaden, an Omega-3 rich fish that is not
utilized as seafood, but which is abundantly available along the
U.S. Gulf of Mexico and Atlantic Coasts. SPECIAL NOTE REGARDING
FORWARD-LOOKING STATEMENTS: The statements contained in this press
release that are not historical facts are forward-looking
statements that involve a number of risks and uncertainties. The
actual results of future events described in any of these
forward-looking statements could differ materially from those
stated in the forward-looking statements. Important factors that
could cause actual results to be materially different from those
forward-looking statements include, among others: (1) the Company's
ability to meet its raw material requirements through its annual
menhaden harvest, which is subject to fluctuations due to natural
conditions over which the Company has no control, such as varying
fish population, fish oil yields, adverse weather conditions and
disease; (2) the impact of worldwide supply and demand
relationships on prices for the Company's products; (3) Omega
Protein's expectations regarding demand and pricing for its
products proving to be incorrect; (4) fluctuations in the Company's
quarterly operating results due to the seasonality of the Company's
business and its deferral of inventory sales based on worldwide
prices for competing products; and (5) the impact of the uncertain
economic conditions, both in the United States and globally. These
and other factors are described in further detail in Omega's
filings with the Securities and Exchange Commission, including its
reports on Form 10-K, Form10-Q and Form 8-K. The Company also posts
its latest internally generated price list for various products on
its Company website, http://www.omegaproteininc.com/. Pricing and
product availability information disclosed in the price list are
subject to change or discontinuance without prior notice, and the
Company undertakes no obligation to update such information. OMEGA
PROTEIN CORPORATION Statement of Operations (unaudited) Three
Months Nine Months Ended September 30, Ended September 30,
------------------- ------------------- 2009 2008 2009 2008 ----
---- ---- ---- (in thousands, except per share amounts) Revenues
$49,940 $54,507 $121,848 $137,744 Cost of sales 48,678 43,923
115,267 102,976 ------ ------ ------- ------- Gross (loss) profit
1,262 10,584 6,581 34,768 Selling, general and administrative
expense 3,041 4,211 9,554 11,874 Research and development expense
365 630 1,047 1,280 (Insurance recoveries and other proceeds)
losses relating to natural disaster and other, net 99 423 (2,166)
608 -- --- ------- --- Operating (loss) income (2,243) 5,320
(1,854) 21,006 Interest income (expense), net (2,233) (978) (3,878)
(2,876) Other income (expense), net (82) 107 (296) (17) ---- ---
----- ---- (Loss) income before income taxes (4,558) 4,449 (6,028)
18,113 (Benefit) provision for income taxes (1,738) 1,335 (2,015)
6,377 ------- ----- ------- ----- Net (loss) income $(2,820) $3,114
$(4,013) $11,736 ======== ====== ======== ======= Basic (loss)
earnings per share $(0.15) $0.17 $(0.21) $0.65 ======= =====
======= ===== Weighted average common shares outstanding 18,712
18,624 18,712 18,160 ====== ====== ====== ====== Diluted (loss)
earnings per share $(0.15) $0.16 $(0.21) $0.63 ======= =====
======= ===== Weighted average common shares and potential common
share equivalents outstanding 18,712 18,875 18,712 18,541 ======
====== ====== ====== OMEGA PROTEIN CORPORATION CONDENSED BALANCE
SHEET (Unaudited) September 30, December 31, 2009 2008 ---- ----
(in thousands, except per share amounts) ASSETS Current assets
$106,935 $123,665 Property and equipment, net 111,865 106,181 Other
assets 3,166 2,735 ----- ----- Total assets $221,966 $232,581
======== ======== LIABILITIES AND STOCKHOLDERS' EQUITY Current
liabilities $33,207 $26,853 Long-term debt, less current maturities
35,528 51,312 Capital lease obligation, net of current portion
1,366 1,634 Deferred tax liability, net of current portion 3,887
3,005 Pension liabilities, net and other 9,701 10,220 Stockholders'
equity 138,277 139,557 ------- ------- Total liabilities and
stockholders' equity $221,966 $232,581 ======== ======== Book value
per share outstanding $7.39 $7.46 ===== ===== DATASOURCE: Omega
Protein Corporation CONTACT: Investor Relations of Omega Protein
Corporation, +1-713-623-0060, Web Site:
http://www.buyomegaprotein.com/
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